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He just doesn’t give up, does he? Self-proclaimed creator of Bitcoin, Craig Wright, now appears willing to testify under oath that he is Satoshi Nakamoto. Or that’s the conclusion Ran NeuNer draws, following Wright’s response to a comment request from the Commodity Futures Trading Commission (CFTC).

I Promise To Tell The Truth, The Whole Truth, And Nothing But The Truth

In December 2018, the CFTC published a Request For Input (RFI) on ‘Crypto-Assets Mechanics and Markets.’ This was primarily to understand more about Ethereum, and the differences between Ether and Bitcoin. As the CFTC is a federal agency, responses to RFIs should be… well, not fraudulent, at any rate.

On 15th February 2019, Wright posted his response, introducing himself and stating:

under the pseudonym of Satoshi Nakamoto I completed a project I started in 1997 that was filed with the Australian government… as BlackNet.

He goes on to claim that the amount of misunderstanding and fallacious information around blockchain systems (including Ethereum) has resulted in his decision to become more public.

So Dr. Craig Wright is willing to testify under oath that he is Satoshi Nakamoto and the founder of Bitcoin. pic.twitter.com/WsqHhXnQzl

It isn’t particularly relevant to the RFI, really serving only to repeat the claim to be Satoshi Nakamoto… albeit in a Federal forum.

I am Satoshi Nakamoto, And So Is My Wife

At this point, Wright’s claims are becoming a farce of Monty Python’s Life Of Brian proportions. After he first ‘came out’ as Satoshi Nakamoto, and the crypto-world widely coughed *bullshit* under its breath, he let it lie.

But now frontrunning his own project Bitcoin SV (Satoshi’s Vision), his alleged ‘amendments’ to historical documents seems to be going into overdrive. Only last week he was pulled up by WikiLeaks for altering a 2008 blog-post to make it look like he’d been working on crypto back then.

Mere hours prior, he was accused of using a forged a 2001 research paper as evidence of his lineage. It was a word-for-word copy of the October 2008 Bitcoin whitepaper. It even already had amendments that he (as Satoshi Nakamoto) made from the August 2008 draft of the same document. Oops… Or perhaps incredibly prescient?

Now, it’s alleged that even his 1997 BlackNet project was being worked on by Tim May several years before that.

Craig Wright 2019: "I completed a project I started in 1997that was filed with the Australian government .. as BlackNet.

Tim May 1997: "I use an experimental–and controversial–experiment I released on the Net several years ago, BlackNet" https://t.co/w5nyUxj17P

But What If?…

Just imagine, if all of this time, Wright has been telling the truth. What would the consequences of that be?

Obviously, Wright is such an unpopular figure that we aren’t all going to start believing (and investing) in Bitcoin SV. Although one can only imagine that this is the point of all this alleged forgery.

Why carefully protect your identity only to then come out to the world via GQ – telling the critics to “piss off!” and reminding entire countries that he’s got more money than them?

But would we all eschew Bitcoin if we found out that he had actually been the inventor?

No, of course not. Even Coldplay had a decent single before they sunk into the mire of smug, self-satisfied, insipid, irrelevance that they became. And we can still listen to that… as long as nobody else finds out.

What do you think of Wright’s latest claims? Share your thought’s below!

Last month, Iran lifted its ban on Bitcoin to make way for its ‘crypto rial’. Now Iranian authorities have launched PayMon cryptocurrency supposedly backed by national gold reserves. Except, it’s not really cryptocurrency after all since there’s nothing peer-to-peer about it and you still need to trust an intermediary (i.e. the Iranian government).

PayMon Has All the Traits of a Classic Shitcoin

Sputnik caught up with Iranian blockchain specialist Hamid Reza Shaabani, to find out about the features of PayMon and what its potential uses are. The specific details are pretty wooly but it does seem to smell a lot like a shitcoin. Shaabani said:

Much of the PayMon currency will enter the market and will be traded in special exchange offices. Some of it will be used for the development of hosts; and some of it will go to the founders of Ghoghnoos.

When asked why cryptocurrency is so important for Iran, Shaabani waxed lyrical about the nation’s excellent geographical position, the people’s interest, and, of course, the fact that:

Bypassing economic sanctions is one of those cases that cannot be ignored.

Using Cryptocurrency to Bypass U.S. Sanctions

Iran has already been in talks about the possibility of a workaround for U.S. sanctions with several trading partners. These include England, France, Germany, Switzerland, and Russia, among others.

However, since France and England are little more than the USA’s lapdogs, it seems extremely unlikely that Iran’s PayMon will find a taker. It’s highly doubtful that even Germany would accept a crypto rial after they bowed to U.S. pressure back in July preventing Iran from withdrawing funds from German banks.

As Shaabani acknowledged, when it comes to acceptance:

it all depends on foreign legislative bodies.

Users of PayMon have to undergo KYC, which means that the ‘cryptocurrency’ itself is centralized. While it’s supposedly backed by gold, just like Venezuela’s Petro is supposedly backed by oil, one must still trust that the said gold bars are actually there.

What Happened to Petro Gold?

In fact, Iran is not the first country to explore a cryptocurrency backed by gold. Venezuela was looking into the Petro Gold around this time last year, although progress on that seems to have halted.

It’s unlikely that Maduro will find many people to trust his oil or gold-backed currencies. In Iran’s case, though, the gold may actually be there since the country had been squirreling it away for months before the sanctions.

A few glaring issues remain, however. It’s not trustless. It’s not peer-to-peer, or even really cryptocurrency if the network has a few nodes operated by the government. So it’s doubtful that it will have any takers.

The cryptocurrencies are faster and cheaper narrative has fizzled out as banks have embraced digital payments in recent years, improving customer experience and usability. Sure, buying a beer with a QR-code may give you a warm and fuzzy feeling, but it isn’t the problem Bitcoin solves. It is much more than that.

Banks Go Digital

An all-too-common narrative a few years back was that Bitcoin (and other cryptocurrencies) would outcompete the likes of Visa and Mastercard with speed and cheaper transactions.

“Won’t somebody think of the merchants” was an often-repeated argument in 2014-215 because credit card companies typically charge around 3 percent service fee to process payments.

Fast forward a few years and merchants haven’t budged. Nor are they jumping on payment-focused coins either like Litecoin, Bitcoin Cash, Dash etc. So why didn’t they stick it to Visa and switch to ‘crypto’?

Digital fiat payments have actually become not only more ubiquitous but also much easier and cheaper. Though the latter is partially due to costs being offset by selling customer info to advertisers (which is a topic for another article).

Banks have indeed upped their game as far as user-friendliness goes with mobile apps, contactless payments, in-app integration, you name it. In fact, it’s never been easier to part ways with your money than it is today.

My Bank Card Beats Your Favorite Coin

My card, given to me by my bank, is tied to an app on my phone so I can check my balance and track all my balance and transaction history. I was impressed when BTC wallets did this six years ago. But banks have caught up fast and are beating cryptocurrencies in this arena.

The card/app work seamlessly together enabling contactless payments in the store, on public transport, and pretty much anywhere Visa/Mastercard are accepted, which is literally everywhere.

Sure, discussing Bitcoin is fun and all. But sometimes I just want a quick coffee without proselytizing Bitcoin to a barista who obviously doesn’t care about censorship-resistance and decentralized consensus protocols.

I should also mention that my bank has excellent customer support. It knows who I am and will block anyone else from using my account with the press of a button on my smartphone. My bank will refund me any money lost due to fraud – which is very reassuring unlike that uneasy feeling of possibly sending BTC to the wrong address by mistake.

What’s more, I can send money instantly to my friends for absolutely zero fees. And why wouldn’t it be zero? My bank is using a good old database after all – not your blockchain that takes minutes to confirm.

In other words, big blocks, small blocks, medium-sized blocks – none of this can compete when it comes to the speed and efficiency of a centralized database for payments.

My bank app even has a QR-code option for in-person payments if I’m feeling extra Bitcoin-ish.

The Problem That Bitcoin Solves

Bitcoin, however, wasn’t meant to compete with Visa or Paypal. Digital payments were already gaining traction when Bitcoin spawned from the 2008 financial crisis.

Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.

– Satoshi Nakamoto, Bitcoin Whitepaper

Bitcoin was instead designed as an alternative to the central banking system that has historically abused the public’s trust. One hyperinflationary episode is all it takes and the money becomes worth less than the paper it’s printed on.

Bitcoin’s monetary policy, on the other hand, is completely transparent, its supply and inflation rate is known, and it’s the hardest form of money to ever exist. Yes, even more than gold because mathematical scarcity beats perceived scarcity.

These attributes make it a money technology that has never existed before – and more importantly, removes the need to trust any intermediary.

In an article titled The Problem That Bitcoin solves, economist and The Bitcoin Standard author, Saifedean Ammous, explains:

[Paul Krugman] seems, mistakenly, to assume bitcoin is competing with consumer payment networks like Visa or PayPal….that is not what bitcoin is best suited for. Rather, bitcoin is an international settlement network, one that competes with the central bank settlement systems that are the foundation upon which networks like Visa or PayPal depend.

Therefore, the ‘payments for coffee on the blockchain’ narrative is dying because paying for stuff and accepting digital payments today isn’t a problem for people.

However, the public is also slowly realizing why Bitcoin isn’t going away. Particularly as publications like Time magazine release articles titled ‘Why Bitcoin Matters for Freedom’ and places like Venezuela are demonstrating how Bitcoin is literally saving lives.

That’s not to say that payments aren’t important. This and other use-cases will be built as ‘apps’ harnessing the trustless Bitcoin blockchain (e.g. Lightning Network). But they’re secondary to what’s really at stake here in an increasingly authoritarian and cashless fiat system: financial sovereignty.

Do you agree that Bitcoin’s primary role is to preserve financial sovereignty? Share your thoughts below!

The US Securities and Exchange Commission took a fairly harsh view on ICOs, judging almost all to be undeclared securities. But isn’t that response just reactionary, over-broad and perhaps even a little bit lazy? Canadian messaging company, Kik, are fighting back, and the industry as a whole should be glad that they are.

The Promise Of Untold Wealth

Initial Coin Offerings (or token sales) appeared on the cryptocurrency scene in 2013, with notable offerings from Ethereum (raising $16m) and Stellar ($39m) the following year. They became the darlings of the industry by 2017, allowing unbridled raising of start-up capital, and generally impressive returns for investors.

Like all things crypto, ICOs went thermo-nuclear in 2017, as media-frenzy meant everyone wanted a piece of the action. With seemingly not enough pieces to go round, that $hitcoin you just bought at pre-ICO prices could score a ten-fold return, even before launch.

Enter the criminals and the woefully under-skilled. Through fraud and/or mismanagement, over half of all ICOs collapsed within four months of the token sale. 2018’s Ethereum price free-fall didn’t help matters either. Somebody needed to act.

Saving Every Crypto-investor

In mid-2017, the SEC had issued a balanced and considered report, following investigation into the DAO project. The report warned ICO issuers and investors that securities laws ‘may’ apply to certain token offerings, DAO included. According to the commission, tokens which promised investors a return were essentially securities, implying that tokens with ‘utility’ were not.

This pretty much made sense to everybody. Selling a token as purely an investment was tantamount to selling company stock or bonds. Whereas a utility token didn’t need to go up in value, as it had other… um, utility. The fact that so many did was due to the buzz around any novel digital tokens at the time. That didn’t suddenly make these tokens securities.

Nobody wanted to see scammers in the space, so the scrutiny of the SEC was generally welcome. But still the speculators flocked, and they expected a return from every new token on the block.

They didn’t want the utility of a token, just an asset so they could get rich quick. And when they didn’t, they complained to the SEC… who weren’t very happy about it. Somebody had to save these idiots from themselves.

It started in February 2018, when SEC Chair Jay Clayton asserted that “every ICO I’ve seen is a security.” By June, Ethereum had distinguished itself as ‘not-a-security’, joining only Bitcoin as a decentralized cryptocurrency… although how decentralised is now debatable.

Pretty much everything else now fell into the category of securities, and the SEC started proceedings accordingly.

Through Kik and Kin

Kik’s first dealings with the SEC over their Kin token were friendly enough. Just a few informal questions. But over time, things ramped up and became more serious until the commission finally issued a Wells notice, outlining why they think there has been a securities infraction.

Kik’s defence hinges around the fact that it was sold as, and is in use as, a currency. Currencies being specifically excluded from being securities.

Of course, the internet has roundly mocked this, suggesting it is only used in apps, which Kik funded, but the internet is being a dick. By this argument Fortnite V-bucks are a security, as are Amazon vouchers, and perhaps even supermarket loyalty points.

“But,” says the Internet, “did Pantera and Polychain (who invested millions in the token presale) know that the tokens weren’t expected to make a profit?” with a smug look in its eye.

Sadly, we weren’t privy to that conversation. But at the time (Aug 2017), even if they read the white-paper, they likely still expected price to skyrocket, because, you know… August 2017. That still doesn’t make it a security.

But I Heard ICOs Were Already Dead

And you may well have heard it right here on Bitcoinist, but I respectfully disagree. The ICO has retreated, hurt and scared, into its cave, licking its wounds, and hiding from an uncaring world. How did it fall so far from grace? What must it do the regain its position at the crypto table?

It’s almost guaranteed that that the heavy-handed scaremongering of the SEC spooked the market far more than some dodgy ICO scammers. In trying to protect the greedy speculators with eyes too wide to read the small print, the SEC ensured that everyone got rekt… So thanks for that.

Tokens which clearly are securities, are now being shilled through STOs, but that’s really not in the pioneering spirit of Bitcoin. Neither are registration and securities regulations going to prevent STO investors from getting burned. This is not purely a crypto-phenomenon, and has been going on for as long as securities have existed.

Importantly, the SEC must accept that not all tokens are securities, however much investors wanted them to behave that way.

Kik fighting this in court is a good thing for the entire industry, and we should all hope they win. The SEC have overstepped their remit and need to be told so. ICOs are a perfectly valid way to raise funds in the crypto space. The current position of the SEC is only going to see its country falling behind because the Commission only has jurisdiction in the US.

But if they are challenged and beaten then the (not so) humble ICO could rise again…

Only this time, RTFMWhite-Paper.

Will Kik be successful in taking on the SEC? Share your thoughts below!

2018 is nearly finished and investors are cautiously optimistic about crypto’s prospects in 2019. While it’s great to think positive, what will it really take to turn the market around in 2019?

2018 was a Nightmare

As the end of 2018 approaches, there will be a steady barrage of articles writing 2018 off as a fluke correction year for crypto. Readers can also expect to be bombarded with proclamations that all cryptocurrencies have bottomed and 2019 will bring a bull run the likes of which the world has never seen.

With that said, 2018 was a rough year and the crypto-bear definitely roamed free and caused an unforeseeable amount of havoc. All criticism aside, 2019 should be a better year than 2018. Honestly, how could it get any worse?

Let’s take a look at what factors and new developments could help the crypto-market turn around next year.

Liquidity, Demand and Volume

Diminishing volume has been a recurring theme all throughout 2018 and a quick glance at a chart for Bitcoin or nearly any other cryptocurrency shows that repeated fake out rallies, dead cat bounces, bull traps and a continuous pattern of lower highs were clear signals that the market would continue trending down but hindsight is 20/20 isn’t it?

The launch of Bakkt’s Bitcoin futures exchange could assist with the demand, liquidity and volume of Bitcoin and there are rumors that the platform operators are considering adding other digital-assets.

As has been discussed throughout the year, institutional grade investment platforms provide an on digital assets ramp for hedge funds, institutional investors, family offices and other larger firms to access the crypto-market in a secure, regulated manner.

To ETF or Not to EFT?

Every month of 2018 was spent pondering whether or not the U.S. Securities and Exchange Commission (SEC) would approve a Bitcoin-based exchange-traded fund. For a time, it seemed that the entire lifeforce and future success of the crypto-market was reliant on the result of this decision and with each postponement and hint of denial the market steadily stepped down another leg.

At this point, it’s safe to say that most retail investors just want to scream out “Just get it over with already.” In other words, either deny or approve the damn thing so the market can react, accept and move on. Obviously, in the event of an approval, demand permitting, the market could experience an uptick in liquidity, demand, and volume.

Even if 2017’s bull rally was the product of a manipulative fluke, it is clear that main street investors appetite for creating a quick buck fueled a parabolic rally that will be the talk of ages.

While cognition is one of the key features that separates man from beast, a good rally and the chance to turn a quick profit is too hard for many a man to resist and if demand and investment from financial giants generate a trend change in the crypto-market, mainstream investors are bound to pile in.

Whether it be parabolic frenzy or purchasing and advertisements from brokers and institutions, higher volume is required.

A New Year of Bullish Bets on CME & CBOE Futures

With Bitcoin shorted to nearly $3,000, Morgan Creek Digital’s Anthony Pompliano and other analysts are still suggesting the digital asset has further to fall. A possible silver lining to the whole situation is with the turn of a new year and Bitcoin price 00 so low, perhaps BTC bets on the CME and CBOE futures will turn bullish.

Analysts have correlated Bitcoin’s precipitous decline with the debut of Bitcoin futures and it seems that their approval and roll out came too late into Bitcoin’s 2017 rally to provide any benefit.

Hopefully, 2019 will reverse this trend as at some point if this trend does not reverse, there’s nowhere to go but up.

At the moment, SEC commissioner Hester Peirce, who many crypto-investors look to as a friend of crypto and affectionately refer to as Crypto-Mom pledges that she will continue to fight for crypto but also cautions, “Don’t hold your breath.

I do caution people to not live or die on when a crypto or Bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto].

– Hester Peirce

Meanwhile, SEC Chairman Jay Clayton resolutely stands by his previous statement that a crypto-ETF is a no until manipulation no longer poses a threat. Clayton has repeatedly said,

I want to see better market surveillance and custody for digital currencies before being comfortable with a crypto ETF.

– Jay Clayton

One thing to look forward to in 2019 is the growth of genuine use cases as the market grows more dynamic and diversified. Investors would do well to redirect their focus from the oft disappointing discussion of Bitcoin ETFs and bull markets to growth opportunities within the expanding sections of the crypto market

Genuine Use Cases

2019 should see an expansion of the crypto payments sector and announcements like last week’s news about a partnership between hardware wallet manufacturer Ledger and payment startup Crypto.com are a preview of what’s to come. The sector requires more services that allow cryptocurrency holders to transact in crypto without having to first spend fiat or exit crypto to make fiat payments.

More brokers offering crypto-to-crypto payment services are needed and a growing number of companies are beginning to enter this space. Crypto holders want to spend their funds and an increasing number of businesses are looking to accept crypto.

In fact, a 2017 study from Visual Capitalist report found that the number of brick-and-mortar shops accepting cryptocurrencies grew by 30.3% and this is representative of nearly 11,300 retailers worldwide.

Even more encouraging is the forecast of the e-commerce and payments sector experiencing exponential growth by 2021. Revenue from E-commerce and mobile payment processors are predicted to rise from $528.2 billion to $885.4 billion.

2018 also saw the gradual development of new sectors in the crypto-hemisphere. In 2016 and 2017 investors earned a return on their investments through block rewards for mining and staking coins to support various networks.

As the ICO market withered in 2018, the profits from mining, masternode operation, and staking became less lucrative for many but new options for earning a return on crypto-holdings emerged.

Crypto-banking, crypto-lending, and crypto-to-crypto payments are all genius concepts that draw from the conventional business models of traditional finance but drop some of the challenges that come with traditional banking.

Stablecoins to the Rescue?

While still approached somewhat warily by investors, stablecoins offer a convenient, safe and at times lucrative (due to arbitrage) place to rest one’s funds as Bitcoin and altcoins whipsaw back and forth.

A number of stablecoins came on the market in 2018 and a currently giving Tether (USDT) a real run for the money. They might function as the saving grace to the cryptomarket as provide a regulated, stable, on-ramp for banks and businesses looking to dabble in crypto.

Also, with the ICO market in shambles, stablecoins and security token offerings could be the next assets that underpin an evolving fundraising model that traditional, blockchain and crypto-based startups need to acquire capital in 2019.

New ventures like the partnership between crypto-lender Nexo and stablecoin TrueUSD are likely to provide profitable alternatives to investors as holders can earn a return steady return on their digital assets and also acquire crypto-to-fiat loans on their crypto holdings.

Other crypto banking providers and payments companies like Nexo, FOTON Bank and Revolut are already making it easier for crypto-holders looking to acquire capital or make crypto payments quickly. The use of smart contracts and platform-specific native tokens are meant to bypass taxable conversions (crypto to fiat, crypto to crypto) and also remove the double transaction fees that those attempting to convert and spend crypto frequently encounter on exchanges.

With forecast of a ‘revolutionary force’ in 2019, investors should keep a close eye on this corner of the crypto-sector to see what other services stablecoins could provide.

In 2019, it’s going to take more than pure speculation for traders to turn a profit and each investor will have to work a little bit harder and familiarize oneself with a maturing crypto-market.

Trading wise, investors will need to stay abreast of new developments and exploit the little opportunities in order to average a respectable profit. At this point, nobody is sure what the market holds for 2019 and it’s yet to be determined if a bottom has been found yet.

In order for the oft-mentioned ‘mass adoption’ that investors and analysts speak of to occur there needs to be genuine, convenient use cases for cryptocurrency other than just investing and spending.

What do you think it will take to turn the crypto-market around in 2019? Share your thoughts in the comments below.

Bitcoin has been quietly preparing for over a decade for the next market storm as a non-political alternative to the money printing pyramid.

Bitcoin Separates Money and State

Bitcoin was forged by the last great financial crisis of 2008 and designed to thrive in financial turmoil.

“Bitcoin adoption has always been driven by bank failures, bailouts, bail-ins, and political unrest,” said Max Keiser in an interview with Bitcoinist earlier this month.

It’s certainly no coincidence that Satoshi Nakamoto left a message in the first ever mined Bitcoin block —known as the genesis block. It famously contains the dated title of an FT article:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.

The anonymous creator hints that Bitcoin is a non-political alternative to the existing financial system. The Bitcoin whitepaper could, in fact, be interpreted by some as a declaration of the separation of money and state.

Bitcoin was an inevitability — a solution to downfalls of the trust-based monetary system — in which central banks and governments have historically abused that trust at the expense of the public.

For almost fifty years now, the de facto global currency has essentially been running on ‘full faith and credit’ only. The problem is that when this faith is tested by the markets (i.e. reality), credit-fuelled bubbles are exposed. When they go pop, liquidity dries up and cash once again becomes king.

Bitcoin: Trust Buster

So it’s no surprise that cash injections — euphemistically known as QE (Quantative Easing) — have become the preferred drug prescribed by central banks to fuel the longest bull market in history.

At the same time, the demand for the US dollar hasn’t waned but actually risen. This phenomenon may have impacted the price of bitcoin 00 this year, according to Keiser.

“The problem Bitcoin has had recently is its competitor, the US Dollar, has been rising,” he explains.

When the dollar rolls over and starts dropping, Bitcoin will hit new ATH.

Meanwhile, critics say it’s too volatile to be a safe haven alternative. Its price has admittedly dropped by 85 percent from its all-time high in 2017. But proponents, like Max Keiser and many others, argue that short-term price fluctuations do not matter if the legacy fiat monetary system is inherently flawed.

They also note that savvy investors are realizing the long-term value proposition of holding the world’s most politically-neutral, hard form of money.

Simply put, trusting no one pays off for those who wait.

Bitcoin Transfers Value From the Sodler to the Hodler

Saifedean Ammous, economist and author of the Bitcoin Standard, states that Bitcoin’s attributes, particularly immutability and neutrality, make it attractive to investors with a long-time preference.

Bitcoin has already gone through 9 years of growth out in the wilds of the internet, mostly without a central planner in charge of it after its creator disappeared. It grew because it offered utility to enough users and developers to keep maintaining it.

It has weathered attacks and hacks and ‘community conflict’ and plenty of powerful interests and questionable characters trying to bend it to their will. After all of this, Bitcoin can indeed claim to be immutable. Once it became clear Bitcoin was successful at doing this, then anyone who was interested in an immutable digital hard money could use it.”

Coinbase President Asiff Hirji, whose San Francisco-based exchange launched a custodial platform for institutional investors earlier this year, also sees Bitcoin and cryptocurrencies rewarding the patient in the future.

According to Hirji, none of Coinbase’s investors speculated on BTC price when they valued the exchange at $8 billion earlier this year. They weren’t betting on what the price will be “today, tomorrow or even a year from now,” he said

“If that’s your time horizon, as an institutional investor, you shouldn’t be touching this,” adds Hirji.

Fragile Fiat

From a security standpoint, centralized money systems are also honeypots. Centralized infrastructure is prone to hacks and shut down compared to a much more robust decentralized network like Bitcoin, which has been operating 24/7 with 99.8 percent uptime.

What’s more, third-parties aren’t just security holes. They are also structurally political. A duopoly such as Visa and Mastercard, for example, can (and do) restrict access for their own reasons, and even have the power to push other companies to toe the line.

The next global financial crisis is baked into the fiat cake. It’s a matter of not if, but when.

Will Bitcoin be ready? Only time will tell. But with warning signs already surfacing such as global social unrest and the markets tanking, the test may come sooner rather than later.